High-frequency traders feel the pressure of one-way markets

Virtu’s $1.3bn move on KCG highlights how a lack of volatility is forcing consolidation

iStockphoto

By

Samuel Agini

March 17, 2017 Updated: 3:52 p.m. GMT

Virtu Financial's unsolicited $1.3 billion approach to buy KCG Holdings for cash is being seen by industry experts as a signal that a lack of market volatility is beginning to squeeze high-frequency traders.

Analysts told FN that the bid looked opportunistic and was an attempt to build scale and add customer-facing business to Virtu's technology-based proprietary trading core.